Match List - I with the provisions of the Income-tax Act, 2025 in List - II : List - IList - II (a) A…
Under the Income-tax Act, 2025: (a) Under section 398(1) (formerly s.201(1) of the Income-tax Act, 1961), a person required to deduct or collect tax who does not deduct or…
Choose your answer
Match List - I with the provisions of the Income-tax Act, 2025 in List - II :
| List - I | List - II |
|---|---|
| (a) A person who fails to deduct tax at source, or after deducting fails to pay it, is deemed to be an assessee in default | (i) Section 439 |
| (b) Interest for default in payment of advance tax | (ii) Section 424 |
| (c) Penalty for under-reporting and misreporting of income | (iii) Section 398(1) |
Answer and explanation
Correct answer B
Under the Income-tax Act, 2025:
(a) Under section 398(1) (formerly s.201(1) of the Income-tax Act, 1961), a person required to deduct or collect tax who does not deduct or pay it, or after deducting fails to pay it, is deemed to be an assessee in default in respect of that tax – (iii).
(b) Under section 424 (formerly s.234B), an assessee liable to pay advance tax who fails to pay it, or pays less than 90% of the assessed tax, is liable to simple interest at 1% for every month or part of a month – (ii).
(c) Under section 439 (formerly s.270A, which replaced the concealment penalty under s.271(1)(c)), penalty is imposed for under-reporting and misreporting of income – (i).
Hence (a)-(iii), (b)-(ii), (c)-(i). Each of the other codes links at least two items to the wrong section.
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UGC NET Commerce